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Finance Bill 2018 – Deemed Dividend and Distribution Tax

Advocate Rahul Sarda has analyzed the amendments proposed by the Finance Bill 2018 to sections 2(22), 115-O and 115-R of the Income-tax Act, 1961 with regard to the taxation of dividends and the levy of dividend distribution tax. He has explained how these amendments will widen the tax base on the pretext of ‘ease of collecting taxes’

I. Introduction

1) Since the Union Budget for the fiscal year 2012-13 presented on 16th March 2012, and all budgets thereafter, we have seen the direct tax proposals being assiduously organised into various heads. While some of these heads represent the disposition of Government’s policies such as Ease of doing business, Make in India and Swachchh Bharat, some other heads denote the transient and ad hoc nature of yearly budgetary exercise such as Rationalisation measures and Tax incentives and reliefs. But there is one head – Widening of tax base – which has figured in some form or the other in direct tax proposals for most budgets during the years 2012 till 2018.

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Finance Bill 2018 – International Tax Amendments

Advocate Sunil Moti Lala and CA Tushar Hathiramani have analyzed the amendments proposed in the Finance Bill 2018 relating to “business connection“. They have explained the precise scope of the proposed amendments and also highlighted the controversies that are likely to arise therefrom. The relevant judgements on the issue have also been cited

Vide the Finance Bill, 2018, India has yet again introduced anti-Base Erosion and Profit Shifting measures in its domestic law in line with the Action Plans formulated by the Organisation of Economic Cooperation and Development (‘OECD’). The international tax amendments brought out vide this Finance Bill seek to expand the scope of the term ‘business connection’ contained in Section 9 of the Income-tax Act, 1961 (‘the Act’) by way of

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Deemed Service Of Notice U/s 143(2) On Assessee – Judgment In Case Of Dharam Narain (SC) Needs Reconsideration

In ITO vs. Dharam Narain, the Supreme Court has held that if the assessee is not available to take service of the s. 143(2) notice, service on the authorized representative is sufficient to draw inference of deemed service of notice on the assessee. It was also held that the fact that the authorized representative is disowned by the assessee is irrelevant. CA Dev Kumar Kothari has carefully analyzed the judgement. He argues that the judgement is wrong and requires reconsideration. He has made good his assertion by giving detailed reasons

In a Writ Petition in case of Dharam Narain Versus Income Tax Officer, Etawah – 2012 (12) TMI 1148 – ALLAHABAD HIGH COURT, the High Court has held that there was no service of notice upon assesse, therefore initiation of assessment proceeding was invalid. However, this has been reversed in CIT V Dharam Narian reported as 2018 (2) TMI 1474 – SUPREME COURT OF INDIA.

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Deadly Deadlines

CA Yash V. Rajpurohit has compiled a list of all important due dates in March 2018, and the statutory obligations which require to be complied with within the said deadline. The checklist will help taxpayers and professionals ensure that they do not miss out on any obligation which may attract penal consequences


“Kaal Kare So Aaj Kar,
Aaj Kare So Ub,
Pal Mein Pralaya Hoyegi,
Bahuri Karoge Kub”

Sant Kabir

Sant Kabir in the 15th Century has clearly portrayed the importance of time management; while inscribing the above doha. The above verse clearly explains the human tendency of laziness and procrastination even at that point of time. Sant has also explained that if we keep on postponing our work, it may cause stress related problems to us. Sant has advised that we should complete our work well within the given timeframe. Completing our work before the target date will not only help us to reduce the stress but it will also help in improving the quality of work.

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Digest Of 2000 Important Judgments On Transfer Pricing, International Tax And Domestic Tax (Jan To Dec 2017)

Sunil-Lala

Advocate Sunil Moti Lala, assisted by CA Tushar Hathiramani, has prepared a compilation of 2000 important judgments on transfer pricing (1,200 cases), International Tax (109 cases) and Domestic Tax (691 cases) reported in the period from January to December 2017. The author has meticulously and systematically classified the judgments into various categories to enable ease of reference. The appeal numbers in most cases have been provided so as to enable the judgements to be retrieved from the website of the respective Court or Tribunal. A PDF copy of the digest is available for download. The digest will prove invaluable to all practitioners of taxation law.

The Digest comprises of all the important judgements dealing with transfer pricing, international taxes and domestic taxation laws. A brief head note is given for each case. The Digests for the earlier periods are available here

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Finance Bill 2018: SE Dastur, Bansi Mehta & Other Experts Explain Implications Of Proposed Amendments

Sashank Dundu

Four eminent tax experts, being S. E. Dastur, Bansi S. Mehta, Saurabh Soparkar and Dr. Girish Ahuja, have conducted an in-depth analysis of the Finance Bill 2018 and explained all of its important amendments. Advocate Sashank Dundu has meticulously summarized the views of the four experts and highlighted the important aspects. The summary will prove invaluable to all taxpayers and professionals

The Finance Bill, [2018] 401 ITR (St.) 36,  has been analysed by various Senior Advocates and Chartered Accountants. Some of the important amendments, points, and the views of the speakers have been summarised for the benefit of tax professionals and readers, as under:

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Prosecution U/s 276B of the Income-tax Act, 1961 – Need Of The Hour Is To Take Taxpayer Friendly Initiative

CA Mayank Mohanka has argued that it not fair for the income-tax authorities to launch prosection u/s 276B for failure to deposit TDS within time even in cases where the delay is for short periods and there are bona fide reasons for the delay. He pleads that the authorities should focus on wilful and habitual defaulters and spare innocent defaulters

The present framework of law in the context of section 276B of the Income Tax Act, treats every assessee who has defaulted in payment of TDS, on equal footing, irrespective of the severity of default. This is totally unwarranted and uncalled for.

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Going For A Date With Assessing Authority For Stay Of Demand!!!!

CA Mayank Mohanka has lightheartedly referred to the applying for stay of demand as “going for a valentine’s date” owing to the high potential for rejection. He has referred to all the important CBDT circulars and judgements on the point and explained how the stay application should be drafted so as to minimize chances of rejection by the AO

The month of February is usually associated with love, aspirations and valentine dates. For assessees and their tax consultants also, it do culminates into dates with assessing authorities, (i leave it up to you to think them to be valentine dates or not), as it is that part of the year, when the regular assessments get concluded and the statutory time-limit of 30 days in the demand notices also gets over and the assessing authorities start putting pressure for recovery of income tax demands…..

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A Study Of The Benami Transactions (Prohibition) Amendment Act 2016

Advocate Deepa Khare

The Benami Transactions (Prohibition) Amendment Act 2016 imposes draconian consequences on persons seeking to evade the law by holding property by illegitimate means. However, the hammer of the law, if literally interpreted, also adversely affects innocent persons who enter into genuine transactions. Advocate Deepa Khare has analyzed the statutory provisions in detail and explained how they should be interpreted so that the objective of the legislature is met while avoiding hardship to genuine transactions

1. Introduction:

1.1 Benami Transactions Prohibition (Amendment) Act 2016 has finally taken its shape and is no more a ‘Paper Tiger’. The subject has been a matter of much debate and deliberation before its insertion. Much has been said for and against the enactment which indicates the intricacy and vexed character. Inspite of diverse views, the enactment comes with a strong conviction about the evil of “Benami”, legislature has outspoken about time and again. The zeal expressed by the legislature to go out of the way to eradicate the evil, raises concerns for those who have been victimized in these transactions and likely be face the serious consequences as well as for those who acted out of long perpetuated habit or psychology. It is essential that the legislation is taken in its correct perspective and achieves the very objective for which it is conceived. The peculiarity in operation of the Act is seen with an interplay between larger public interest (eradication of illegal means and resources) v. equity and justice (exclusion of genuine transactions).

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Direct Tax Changes Proposed In The Union Budget 2018

CA Paras Dawar has systematically set out all the amendments proposed to be made to the Direct Tax Laws by the Finance Bill 2018 in a tabular format. He has then compared the amendments with the existing law and explained the precise impact of the proposed amendments. He has also systematically bifurcated the amendments based on whether they have financial implications or make changes in compliance procedures or affect the departmental procedure. The format prepared by the author makes it easy to come to grips with all the changes in one glance

Direct Tax changes proposed in the Union Budget, 2018

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